Having risen more than 60 per cent since the start of last year, the price of gold is drumming up excitement over the potential for investment in Australia’s existing and untapped projects.
Gold prices hit $5028 yesterday, crossing the $5000 threshold into never-before-seen territory.
The jump represents a 20 per cent increase in the gold price since the start of the year, reported to be the commodity’s best quarter since 1986.
And Collins St Asset Management’s Michael Goldberg said the party might only just be getting started.
“I don’t think the general market has cottoned on to this, but we’re hopeful this is just the start of a genuine gold bull run that we haven’t seen for nearly 15 years,” Goldberg told the Australian Financial Review.
“The past couple of gold bull markets lasted about 10 years and I reckon we’re only three to four years into this one.”
Kalgoorlie-Boulder Chamber of Commerce and Industry chief executive Simone De Been said the unheard of prices will see investment in gold-rich regions like the Western Australian Goldfields boom.
“It’s a real milestone … gold’s a safe haven and there’s uncertainty around the world at the moment, so gold’s the place to be,” De Been told the ABC.
“I certainly think it will stimulate exploration in the Goldfields and more companies might invest in infrastructure because the price is so high, and hopefully it keeps going up and stimulating our economy.”
A recent report from BDO Australia declared gold will continue its reign as one of Australia’s hottest commodities in 2025, with project investment projected to thrive.
“The high gold price has been a significant driver for the increased funding in the [resources] sector,” BDO global leader of natural resources and energy Sherif Andrawes said.
“Gold explorers have thrived, benefiting from the global deflationary fiscal policy and political uncertainty.”
Australia is one of the world’s largest gold producers. The surge in prices will likely drive economic growth in Australia’s gold sector, benefitting miners and investors alike.
With strong gold prices expected to continue, Australia’s gold-rich regions will continue to thrive.
